According to the latest research report titled “Automated Parking System Market Forecast to 2028 – COVID-19 Impact and Global Analysis,” published by The Insight Partners, the market is expected to reach US$ 3,543.77 million by 2028, registering a CAGR of 14.1% during 2021–2028.
Increasing Number of Vehicles and Consequently Growing Demand for Sustainable Parking Solutions to Drive Market Growth During Forecast Period
According to the World Economic Forum, the number of cars in the world is estimated reach 2 billion mark by 2040. Industry experts anticipate most of this growth to happen in emerging markets such as China and India, owing to the rapid increase in population. With the surge in number of vehicles, people are facing issues such as traffic congestion and parking space insufficiency. Fully automated parking systems are capable of parking and retrieving a car automatically. Consumers demand for comfort and convenience, which has propelled the adoption of automated parking systems that increase capacity, efficiency, and safety of the occupants. Reduced cycle time up to 30–35% is augmenting the growth of the market for non-palleted parking solutions. Growing technological innovations and integrations in parking guidance systems, license plate recognition systems, sensor-based parking recognition systems, and RFID systems are further likely to raise the sustainability of APS systems.
Growth of economies, and improvements in production and manufacturing infrastructures, especially in the developing countries, have bolstered the automobile market growth. According to the European Automobile Manufacturers Association, 77.9 million motor vehicles were produced in the world in 2020. After witnessing a significant drop in 2020 due to the onset of COVID-19, the automotive market has begun witnessing a gradual recovery in consumer demand for cars since the last quarter of 2020. According to several automotive industry associations and organizations, the automotive sector experienced ~20–25% loss in production and more than 30% loss in sales in 2020. The component manufacturers observed significant tremors in 2020, indicating decline in automotive manufacturing. However, as per industry experts, the demand for mobility is expected rise in the next few years. The lower traffic on road in 2020 severely hindered the revenue of the parking industry, which reduced the demand for APS.
Key Findings of Study:
The global automated parking system market is segmented into five major regions—North America, Europe, Asia Pacific (APAC), the Middle East & Africa (MEA), and South America (SAM). Europe and North America are leading regions in the automotive production across the world. The regions are witnessing a significant evolution in the parking access and revenue control systems (PARCS) technology, which is becoming a standard in parking facility operations. Automated and semi-automated garages have gained significant popularity in New York, Philadelphia, Miami, and Los Angeles. There is a rising demand for automatic garages with hydraulic pallets and computerized shelving, which park up to 250 cars per hour, with 32 cars in motion at any time. The cost of parking has increased with rapid urbanization, which is making cities denser. The installation of automated parking garages is likely to surge in the region due to their high efficiency. Automated parking enables the close parking of vehicles as it reduces the space needed for manual parking maneuvers. Moreover, nobody can access the cars while they are parked, which reduces the need to build ramps, lanes, stairs, or elevators for occupants to enter and leave. Market players in North America are largely focused on the development of robotic garages to reduce operating costs. The “Smart Cities” initiative of the US government was initiated in 2015 with an aim to improve city services; it granted US$ 160 million in funding. Most of the automated parking structures in the US are funded as a part of the larger real estate development projects. Government support and public private partnerships is anticipated to boost the growth of the automated parking system market in North America.
Asia Pacific is the world’s fastest-growing region in terms of automobile manufacturing. Large manufacturing facilities in countries such as China, India, and Japan; presence of a large consumer base; and the presence of key market players contribute significantly to the large-scale automotive production in the region. China recently introduced its first robotic diagonal parking garage in the city of Nanjing in East China to address the issue of space insufficiency. The garage is based on the mechanical model of common storage and retrieval system. The system eliminates the structures such as driving lanes, ramps, pedestrian walkways, and shorter ceiling heights, thus freeing up space for developmental or commercial purposes. Japan’s Eco Park is an automated car storage system that uses a turntable lift to lower vehicles into the silo-shaped garage, further storing them automatically. There is a growing trend of automated multilevel parking systems in Asia Pacific countries. Technological advancements are further encouraging the introduction of design-efficient automated parking lots for residential, commercial, and mixed-use parking purposes in this region.
